Indianapolis Employees Left Without Health Insurance After Advantage Health Folds

A memo to all city of Indianapolis employees dated March 3, 2016 notified them that the group insurance plan offered to them through Advantage Health Solutions would terminate at the end of the month. Employees were assured their consumer-driven health plan ("CDHP") would be transitioned seamlessly to a new plan offered by Anthem. Advance Indiana has learned that employees are showing up for doctor's appointments only to learn they have no insurance.

The memo told city employees that everyone covered under Advantage's CDHP would be automatically enrolled in Anthem CDHP effective April 1 paying the same health insurance premiums and be provided the same level of coverage they received under their Advantage plan. The memo offered no reason why the Advantage plan was being terminated. The health insurance company was placed under the supervision of the Indiana Department of Insurance last November after it reported losses of $46.3 million during the first 8 months of the year. The company's owners, St. Vincent Health and St. Francis Health, were forced to make an emergency $33 million cash infusion to keep the insurer solvent.

Advantage announced last year it was terminating its Medicare Advantage alternative Medicare plan at the end of the year under which it provided private health insurance to 22,500 seniors. Hoosier seniors were sent scampering to sign up for another plan offered by other insurers at the last minute. On January 29, Advantage gave notice to state officials that it was laying off 78 workers in Indianapolis. City employees have complained for the past year they were being denied coverage for health care services they believed were covered by the Advantage plan. Lately, city employees have been stuck paying bills after their health care provider told them they were no longer insured. Mayor Greg Ballard's administration touted promised savings when the Advantage CDHP was originally rolled out to city employees.